Company projects the following sales for the first three months of the year:

$13,500

in

January;

$10,200

in

February;

and

$11,100

in

March.

The company expects

80%

of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on

January

1. Round to the nearest dollar.Read the requirements

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.

Requirement 1. Prepare a schedule of cash receipts for

Armand

for

January,

February,

and

March.

What is the balance in Accounts Receivable on

March

31?

(If an input field is not used, leave the input field empty. Do not enter a zero.)

Cash Receipts from Customers
		January	February	March	Total
Total sales		$13,500	$10,200	$11,100	$34,800
		January	February	March	Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1
JanuaryCash sales		$10,800
JanuaryCredit sales, collection of January sales in January		1,350
JanuaryCredit sales, collection of January sales in February			$1,350
FebruaryCash sales			8,160
FebruaryCredit sales, collection of February sales in February			1,020
FebruaryCredit sales, collection of February sales in March				$1,020
MarchCash sales				8,880
MarchCredit sales, collection of March sales in March				1,110
Total cash receipts from customers		$12,150	$10,530	$11,010	$33,690
Accounts Receivable balance, March 31:
MarchCredit sales, collection of March sales in April		$1,110

Requirement 2. Prepare a revised schedule of cash receipts if receipts from sales on account are

60%

in the month of thesale,

10%

in the month following the sale, and

30%

in the second month following the sale. What is the balance in Accounts Receivable on

March

31?

(If an input field is not used, leave the input field empty. Do not enter a zero.)

Cash Receipts from Customers
		January	February	March	Total
Total sales
		January	February	March	Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1
JanuaryCash sales
JanuaryCredit sales, collection of January sales in January
JanuaryCredit sales, collection of January sales in February
JanuaryCredit sales, collection of January sales in March
FebruaryCash sales
FebruaryCredit sales, collection of February sales in February
FebruaryCredit sales, collection of February sales in March
MarchCash sales
MarchCredit sales, collection of March sales in March
Total cash receipts from customers
Accounts Receivable balance, March 31:
Credit sales, collection in April and May